Money Tank Is Filling Up, Liquidity High, Primary Money Grows Double-Digit

REPUBLIKA.CO.ID, JAKARTA – Bank Indonesia has again recorded double-digit growth in the adjusted money supply (M0). In February 2026, adjusted M0 grew by 18.3 percent year-on-year. “Adjusted M0 in February 2026 grew 18.3 percent (yoy), higher than the 14.7 percent (yoy) growth in the previous month, standing at Rp 2,228 trillion,” said BI’s Head of the Communications Department Ramdan Denny Prakoso in a statement on Friday (6 March 2026). Denny noted that the development was driven by the acceleration in growth of banks’ giro deposits in BI adjusted by 33.6 percent (yoy) and currency in circulation at 15.8 percent (yoy). “Based on the factors influencing it, the growth of adjusted M0 has taken into account the impact of liquidity incentives (adjusted monetary policy),” he explained. It is known that adjusted M0 depicts the evolution of base money that isolates the impact of reductions in banks’ giro at BI due to liquidity incentives. Simply, M0 describes the most basic liquidity conditions in the economy. It consists of currency in circulation among the public and banks’ reserves at the central bank. As for the adjusted, it shows M0 that has been adjusted to better reflect real liquidity available in the economy. An increase in adjusted M0 indicates liquidity rising, the central bank expanding monetary policy, and ultimately contributing to economic growth. Since January 2025, BI has been adjusting the calculation of adjusted M0 to provide a fuller understanding of base money development and the influence of BI’s liquidity policy.